Tullett Prebon dragged into Libor scandal

London-listed broker "involved in conversations" over Libor.

New Statesman
Photograph: Getty Images.

An unnamed broker at Tullett Prebon is believed to have been involved in conversations related to manipulation of the yen Libor rate, according to the Financial Times.

In the UBS settlement document, the Financial Services Authority (FSA) wrote that Tom Hayes, former UBS trader identified as Trader A, made 39 Libor-related requests in July 2009 of an unnamed broker, identified as Broker F of Broker Firm C.

However, according to undisclosed sources probing the Libor, Tullett is Broker Firm C.

In an electronic chat, Hayes put in a request for the six-month yen rate on 14 July 2009 saying “HIGH 6M SUPERMAN . . . BE A HERO TODAY”, while Broker F replied: “ill try mate ... as always.”, according to UBS settlement document.

The document also alleges that two UBS traders entered into “wash trades through two broker firms in order to facilitate corrupt brokerage payments to brokers as reward for their efforts to manipulate [Japanese yen] Libor submissions” made by rate-setting banks.

The RBS settlement, in which Tullett is Broker Firm 3, alleges that RBS paid a total of “at least £199,000 in corrupt payments to two broker firms to increase its influence over the broker firms”.

Sources familiar with the matter said that these firms were RP Martin and Tullett.

Tullett said: “Tullett Prebon has never been informed by the FSA or any other regulatory authority that Tullett Prebon or any of its brokers are under investigation in relation to Libor.”

UBS paid $1.5bn for Libor scam in December 2012, while RBS paid £390m to regulators in the UK and US last week.

In January 2013, the Financial Times reported that the UK-based dealer broker ICAP had become the focus of an FSA probe into the Libor affair.